Question

Is car insurance tax-deductible?

Car insurance is tax-deductible only if you use the car for business purposes and not for personal use.

Tax deductions for car insurance are applicable to vehicle usage related to businesses. If you use your vehicle for personal trips, then your car insurance is not eligible for tax deductions. If you are eligible for tax deductions on your car insurance, then you must calculate it based on the percentage of business mileage and based on the actual costs, like fuel, repair, and the standard mileage rate.  

So, if you are self-employed, then car insurance, which is a car-related expense, is tax-deductible. However, there are other car owners who are eligible for tax deductions on their car insurance. This includes reservists in the armed forces who travel more than 100 miles from home, other qualified performing artists, and government officials. 

Please make sure you maintain mileage logs for reimbursements.